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CVD Reports 108% Order Increase in Q2

CVD Equipment Corporation (NASDAQ:CVV),
a leading provider of custom chemical vapor deposition systems, today
announced its financial results for the three and six months ended June
30, 2014.

CVD reported new orders of approximately $5,364,000 for the three months
ended June 30, 2014 compared to new orders totaling $2,574,000 for the
three months ended June 30, 2013, an increase of 108%. Revenue for the
three months ended June 30, 2014 was $6,107,000 compared to $4,848,000
for the three months ended June 30, 2013, an increase of 26%. The
Company recorded pre-tax income of $141,000 and net income of $202,000
or $0.03 per share basic and diluted during this 2nd quarter
of 2014 compared to pre-tax income of $1,005,000 and $874,000 or $0.14
per share basic and diluted for the three months ended June 30, 2013.
Last year's results for the three months ended June 30, 2013 included
the one-time capital gain of $887,000 on the sale of our former
headquarters.

CVD reported new orders of approximately $21,089,000 for the six months
ending June 30, 2014, an increase of 267% over the $5,748,000 of new
orders for the six months ended June 30, 2013. Revenue for the six
months ended June 30, 2014 was approximately $10,492,000, surpassing by
26.4% the revenue of $8,298,000 achieved in the six months ended June
30, 2013. The Company recorded pre-tax income of $92,000 during the six
months ended June 30, 2014 compared to pre-tax income of $102,000 for
the six months ended June 30, 2013. During the six months ended June 30,
2014, the Company sustained a net loss of $($66,000) or ($0.01) per
share both basic and diluted, primarily the result of a one-time write
off of state-level deferred tax assets of $381,000 due to the
elimination of NYS income tax for qualified manufacturing companies such
as CVD. During the six months ended June 30, 2013, the Company reported
net income of $434,000 which included a one-time capital gain of
$887,000 on the sale of our former headquarters.

The Company continues to maintain a strong cash position of
approximately $9,400,000. The backlog as of June 30, 2014 was
approximately $14,514,000 compared to the backlog of $5,516,000 as of
June 30, 2013. Although timing for completion of backlog varies
depending on the product mix and can be as long as two years, the
Company believes a significant portion of its current backlog will be
completed within the next twelve months.

Leonard Rosenbaum, President and Chief Executive Officer, stated: "We
continue to see opportunities in the key markets we are pursuing.
Chemical vapor deposition applications in aerospace, medical, research
and production equipment for nano materials will continue to drive our
business. We are happy to announce that in the later part of Q2, 2014 we
received a follow on order from a major medical supply company for
additional deposition systems to coat implants. The use of chemical
vapor deposition equipment in the medical and aerospace fields will
continue growing in the future.

"Our Application Laboratory continues to advance technology for
Graphene, Nanowires and Nanotube materials and work with potential end
users to apply this technology to advance these nano materials into
large volume, value added products. Our custom CVD solutions and systems
are provided to industrial customers to help scale up their production
requirements. We anticipate that we will continue to grow our orders and
revenue in the second half of the year."

CVD Equipment Corporation

Comparison of Consolidated Statements of Operations

For the

Three Months Ended

Six Months Ended

6/30/2014

6/30/2013

6/30/2014

6/30/2013

Revenue

$

6,107,000

$

4,848,000

$

10,492,000

$

8,298,000

Gross profit

2,235,000

1,785,000

4,019,000

2,572,000

Operating income

158,000

1,043,000

108,000

173,000

Pre-tax income

141,000

1,005,000

92,000

102,000

Net income/(loss)

202,000

874,000

(66,000

)

434,000

Net earnings

- Per share basic

0.03

$

0.14

$

(0.01

)

$

0.07

- Per share diluted

0.03

$

0.14

$

(0.01

)

$

0.07

Stock Outstanding

- Basic

6,112,357

6,069,977

6,114,716

6,062,898

- Diluted

6,224,948

6,179,965

6,114,716

6,177,832

Earnings release should be read in conjunction with Company's Annual
Report on Form 10-K for fiscal year ended December 31, 2013

CVD Equipment Corporation (NASDAQ:CVV)
is a designer and manufacturer of custom and standard state-of-the-art
equipment used in the development, design and manufacture of advanced
electronic components, materials and coatings for research and
industrial applications. CVD
offers a broad range of chemical vapor deposition, gas control, and
other equipment that is used by customers to research, design and
manufacture semiconductors, solar cells, graphene, carbon nanotubes,
nanowires, LEDs, MEMS, smart glass coatings, batteries, ultra
capacitors, medical coatings, industrial coatings and equipment for
surface mounting of printed circuit components. CVD's
application laboratory focuses on higher efficiency nano and nano to
macro material manufacturing for a wide variety of growth markets, which
are marketed through our wholly owned subsidiary CVD
Materials Corporation.

The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements
or other written statements made or to be made by CVD Equipment
Corporation) contains statements that are forward-looking. All
statements other than statements of historical fact are hereby
identified as "forward-looking statements, "as such term is defined in
Section 27A of the Securities Exchange Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward looking information involves a number of known and unknown risks
and uncertainties that could cause actual results to differ materially
from those discussed or anticipated by management. Potential risks and
uncertainties include, among other factors, conditions, success of CVD
Equipment Corporation's growth and sales strategies, the possibility of
customer changes in delivery schedules, cancellation of orders,
potential delays in product shipments, delays in obtaining inventory
parts from suppliers and failure to satisfy customer acceptance
requirements.